Failure of corporate governance examples

Analysis

First, we summarize the board characteristics of the firms which eventually appointed interim CEOs.
As a comparison, we look at the firms which appointed permanent CEOs.
Out of 10,537 CEO successions during the period 2000-2017, 798 involve the appointment of an interim CEO.
Table 1: Characteristics of US companies appointing interim vs. permanent .

How have companies been impacted by governance failures?

Recent examples of how companies have been impacted by governance failures include:

The Board of a national construction firm failed to adequately manage the company’s principal risks by allowing it to take on high debts while trading on low margins leading to liquidation.

Introduction

8% of CEO successions in the U.S. face assignment of an interim.
Intel Corp.
CEO, Brian Krzanich, resigned on June 20th for violating the company’s non-fraternization policy.
The board appointed Robert Swan, the company’s CFO, as the Interim CEO.
The company was faced with a corporate governance crisis and there likely was no succession plan in pla.

Is good governance practice inadequately heeded or wilfully ignored?

In this article from corporate governance expert Nigel Kendall, we explore examples of where good governance practice was inadequately heeded – or wilfully ignored.
Good corporate governance ensures that a company operates in a responsible, ethical, and sustainable manner, with transparency and accountability to its stakeholders.

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